Suppose That a Consumer Purchases Just Two Goods, X and Y

question 395

Multiple Choice

Suppose that a consumer purchases just two goods, X and Y. The slope of the budget line would indicate the

• A) opportunity cost of good Y in terms of good X given up for each unit of Y.
• B) opportunity cost of good X in terms of good Y given up for each unit of X.
• C) maximum quantity of good Y that the consumer could buy with a given budget.
• D) maximum quantity of good X that the consumer could buy with a given budget.

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Definitions:

Categorical Proposition

A statement relating two classes or categories, asserting that all, some, or none of the members of one class are included in another.

Major Premise

In a syllogism, the first proposition which asserts a general principle.

Singular Propositions

Statements that make a claim about a specific single entity or unique instance.

Syllogisms

Logical arguments that apply deductive reasoning to arrive at a conclusion based on two or more premises that are asserted to be true.